The Friedman Doctrine: The Social Responsibility of Business is to Increase Its Profits

We will be hosting the Janus Forum on Thursday October 13, 2022 at 3:00 P.M. in the Grossman School of Business, Keller Room / Ifshin Hall.

What is the purpose of a corporation? In an influential 1970 essay, Nobel Laureate Milton Friedman expounded the view that the social responsibility of business is to maximize its profits, with no higher purpose than maximizing profits for shareholders.  One view that has gained traction in recent years is that the mission of corporations is broader, and in addition to earning profits, includes creating long-term value for employees, customers, suppliers, creditors, and the community at large. An alternative view, a refinement of the Friedman Doctrine is that while the primary responsibility of corporations is to their shareholders, since shareholders care about more than money, companies should maximize shareholder welfare.  In this Janus Forum event, we welcome two distinguished scholars that have made important contributions to understanding the responsibilities of corporations in our complex modern society.  Professor Ed Freeman from The Darden School at the University of Virginia and Professor Luigi Zingales from the Booth School at the University of Chicago will debate whether the responsibilities of corporations include balancing the claims of many stakeholders or are limited to maximizing shareholder welfare. 

R. Edward Freeman / UVA Darden School of Business

Watch Freemans Stakeholder Podcast here

Luigi Zingales | The University of Chicago Booth School of Business

Watch Zingales’s Capital Isn’t Podcast here